MONDAY  26-01-09

INVESTORS NEED TO WAIT WITH CASH

 

Sensex Technical View :
The slow drift down continues in the index. With a sustained move below the triangle lines giving a confirmation of the breakdown on downside . Technically targets would be placed at 8300/7700 and lower. Short term support is placed around 8300-8500 where a pause should come ideally in the current downtrend. 

Traders should continue to look for stock specific shorts as the downmoves are as of now more in the out of index stocks. 

Stocks to watchout for :

Many large banks like SBI , AXIS , Kotak have come close to oct lows and can give a minor pullback move. Whereas PSU banks like BOI , BOB and PNB which were holding up well till now are seeing selling pressure. 

AXIS Bank has come close to october low zone of 360-375 and could see a bounce from that range. Buy as closer to the range with a stop below 358 for a small 5-8 % pop. Even Kotak near

BHEL if sustains below 1300-1320 could head towards 1260/1210 in short term. 

CESC below 220 can be a short trade for a tgt 210-195 stop of 229. Its a low traded stock so wait for an increase in volumes to go ahead. 

Larsen and Toubro has closed below 660 and would be best avoided by investors as targets could be lower. With a lot of news flow volatility would increase too.